The first weekly Fed balance sheet for the month of March reveals a $13.6bn increase in our Global Dollar Liquidity Index. Liquidity bulls are firmly in control. The data support the view that the shape of the yield curve is losing relevance as a liquidity "tell" in a globalized world. Yes, the stock of Treasury securities held by the Fed is growing rather slowly (+2.25%, the weakest rate since January 2001).

But compare this to the explosive rate of growth of non-Treasury securities held by foreign central banks. According to my estimates, they went from roughly $104bn in early 2001 to almost $639bn now. In that same period, Treasuries held by the Fed grew "only" by 43%. In other words: when it comes to global liquidity, Asia is the place that matters.